SThe U.S. East Coast has been the principal market for
Europe’s gasoline exports, taking ¾ of Europe’s export volumes.In 2006, the elimination of MTBE from RFG
on the East Coast added a challenge for Europe’s gasoline exporters to the
U.S., which was met as the U.S. has become a critical market for European
refiners.

SLooking to the future, Europe’s distillate imports may be
more difficult to locate as European sulfur specifications are lowered for a
few years.After 2010, new refinery
projects in the Middle East and India will look to Europe as a market for
their increased diesel export capability.But Europe may still be competing with Asia for those product barrels.